- Luna Foundation Guard, the nonprofit behind Terra’s UST stablecoin, has acquired $1.5 billion worth of Bitcoin.
- This purchase makes LFG the second-largest corporate owner of Bitcoin, surpassing Tesla.
- The transaction was facilitated by cryptocurrency prime broker Genesis and cryptocurrency hedge fund 3AC.
Luna Foundation Guard (LFG), a non-profit organization focused on developing the Terra ecosystem, has completed an over-the-counter (OTC) purchase of 37,863 Bitcoin valued at $1.5 billion, making Tesla the second-largest corporate owner of BTC surpassed a press release.
Prior to this purchase, LFG held 42,530 BTC in this wallet, currently worth over $1.6 billion. Tesla currently holds 43,200 BTC, which is currently valued at nearly $1.7 billion. This purchase of 37,863 BTC positions LFG nearly a third of the way on its original plans to acquire $10 billion worth of bitcoin to bolster the UST forex reserve, which backs the Terra ecosystem stablecoin.
“LFG’s mission of supporting the stability and adoption of the UST stablecoin continues with the recent deal to acquire BTC from Genesis for the UST forex reserve,” said Do Kwon, LFG Board Member and Co-Founder and CEO of Terraform Labs.
The initial $1 billion in BTC acquired by LFG was facilitated by Genesis, a prominent cryptocurrency prime broker, through an OTC swap of UST stablecoin for BTC. This OTC transaction was the first of its kind on the scale achieved. The remaining $500 million was raised by Three Arrows Capital (3AC), a leading cryptocurrency hedge fund.
“Terra’s remarkable growth has continually transformed crypto markets over the past two years,” said Joshua Lim, Genesis’ head of derivatives. “Genesis is excited to be a liquidity partner of the Terra ecosystem, connecting it to a broader audience of institutional market participants.”
With LFG’s Bitcoin reserves totaling 80,394 BTC, worth over $3.1 billion, this purchase places the foundation among the top 10 Bitcoin holders in the world.